Why Do Businesses Fail?

I’m currently in a workshop with one of my mentors, and we’re tackling a tough but crucial question: Why do businesses fail? We’re grading ourselves and our businesses against a list of common pitfalls, and let me tell you—it’s eye-opening.

Take a look at the list below. Which areas are you crushing, and where do you need to put more energy?

• Lack of a Clear Mission and Vision: Without clear values, beliefs, and perspectives, it’s easy to drift.

• No Pro Forma of Financials: If you’re not forecasting, you’re guessing—and that’s risky.

• Failure to Attract the Right People: Whether it’s clients or team members, the right fit is everything.

• Inability to Implement Proven Systems: Great ideas don’t matter if they aren’t backed by solid execution.

• Failure to Maintain Focus and Accountability: Staying the course and holding yourself and others accountable is non-negotiable.

• Lack of Empowered Leadership and Teamwork: Strong leaders and cohesive teams drive sustainable success.

• Inability to Control Expenses or Lead with Revenue: Keep your spending in check and make revenue your guide.

• Not Achieving or Sustaining Momentum: You need strong initial momentum and strategies to reignite it during growth seasons.

This list is a fantastic gut check. How’s your business doing in these areas? Take a moment to reflect—your next big breakthrough could start here.